Health Net 2002 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2002 Health Net annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

DIVIDENDS
We have paid no dividends on the Class A Common
Stock during the preceding two fiscal years. We have no
present intention of paying any dividends on the Class A
Common Stock, although, the matter will be periodically
reviewed by our Board of Directors.
We are a holding company and, therefore, our ability
to pay dividends depends on distributions received from
our subsidiaries, which are subject to regulatory net worth
requirements and additional state regulations which may
restrict the declaration of dividends by HMOs, insurance
companies and licensed managed health care plans. The
payment of any dividend is at the discretion of our Board
of Directors and depends upon our earnings, financial
position (including our cash position), capital requirements
and such other factors as our Board of Directors deems
relevant.
Under our credit agreements with Bank of America,
N.A., as agent, we cannot declare or pay cash dividends to
our stockholders or purchase, redeem or otherwise acquire
shares of our capital stock or warrants, rights or options
to acquire such shares for cash except to the extent
permitted under the credit agreements, which are described
elsewhere in this Annual Report to Stockholders for the
year ended December 31, 2002.
In April 2002, our Board of Directors authorized us
to repurchase up to $250 million (net of exercise proceeds
and tax benefits from the exercise of employee stock
options) of our Class A Common Stock. Pursuant to this
repurchase program, we repurchased an aggregate of
9.9 million shares of our Class A Common Stock for
aggregate consideration of approximately $247 million as
of March 17, 2003. Share repurchases are made under this
repurchase program from time to time through open market
purchases or through privately negotiated transactions.
26 | HEALTH NET, INC.
Market for Registrant’s Common Equity
and Related Stockholder Matters
The following table sets forth the high and low sales prices
of the Company’s Class A Common Stock, par value $.001
per share (the “Class A Common Stock”), on
The New York Stock Exchange, Inc. (“NYSE”) since
January 2, 2001.
HIGH LOW
Calendar Quarter—2001
First Quarter $ 26.19 $ 17.42
Second Quarter 21.91 16.35
Third Quarter 19.72 16.00
Fourth Quarter 23.99 18.50
Calendar Quarter—2002
First Quarter $ 27.60 $ 20.55
Second Quarter 30.15 24.70
Third Quarter 26.79 20.35
Fourth Quarter 27.57 21.17
Calendar Quarter—2003
First Quarter
(through March 17, 2003) $ 25.49 $ 24.36
On March 17, 2003, the last reported sales price
per share of the Class A Common Stock was $25.35
per share.